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Home Front Economy
NY Gov seeks to tax on-line porno
2009-02-16
Now Gov. Paterson is rubbing the porn industry the wrong way.

From triple-X starlets to smut producers, porn industry insiders bemoaned the governor's plan to apply the so-called "iPod tax" on online music downloads to Web pornography and pay-per-view on television.

"We've had an adult industry in this country for decades, and now they want to tax us because of a deficit. That's not at all fair," complained Shawna Lenee, 21, a perky blonde, March 2009 Penthouse Pet and star of more than 200 hardcore videos.

The Paterson administration wants to expand the state's 4 percent sales tax to all digital purchases, from music downloads to e-books to movies if the retailer has some kind of presence in New York state. The 4 percent would also be applied to any subscription service that provides unlimited content for a monthly fee.

"This is simply bringing the tax code in line with technology," said Matt Anderson of the state Division of the Budget. "Regardless of whether or not an item is purchased at a brick-and-mortar store or online, it would be treated consistently."

The administration believes the digital tax will bring an additional money shot of $15 million a year into state coffers.
I have to think this is a 'gross' overestimate - that would translate into < $350 million in proceeds - of course in that biz, people exaggerate
Lenee, star of such films as "Teenstravaganza #7" and "Throated #13," said her Penthouse-produced videos would be impacted because Penthouse has offices in New York City.
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